Residents don't want to search high and low for protection; they expect it to appear where it's most relevant. Insurance has always been about confidence, but during a digital buying journey, confidence depends on timing, relevance, and the ease with which protection blends into the experience itself.
That expectation is reshaping strategy across the industry. The State Of Embedded Insurance 2024 found that 94% of insurers view embedded insurance as a critical part of their future strategy. It's clear that insurers are no longer treating embedded insurance as only a distribution tactic but are treating it as a customer experience (CX) function.
Embedded insurance isn't new. What is new is the maturity of the technology and partnerships behind it. The next step is deepening trust and reducing friction at the emotional peaks of the journey.
TWO MOMENTS THAT MATTER THE MOST
In CX, timing is everything. Embedded insurance delivers its biggest impacts at two places in the customer journey: at checkout and right after purchase.
At checkout, customers are already in decision mode. They're focused and ready to act. When protection is offered right there, without extra steps or redirects, it feels like a natural extension of the transaction, rather than a separate sale. Subtle integration is essential. Research from BCG found that "conversion rates for traditional insurers that have embraced this model are already higher than for separate insurance for the same products," reinforcing the power of being present at the right moment.
The second moment is right after purchase, when the customer starts using what they bought. That's when peace of mind kicks in and becomes tangible. Knowing they're covered from day one reduces post-purchase anxiety and builds trust between buyer and brand. This connection ties into measurable CX gains with higher engagement and improved retention.
These moments also help explain why embedded insurance is expanding so quickly. As smoother, better-timed experiences become the norm, adoption rises. The embedded insurance market is projected to grow from $143.88 billion in 2025 to more than $800 billion by 2032, a CAGR of 28%. This steep trajectory is fueled partly by higher conversion rates and growing customer preferences for protection that appears naturally within the journey.
INSURANCE THAT FEELS LIKE CARE, NOT COMMERCE
For embedded insurance to actually enhance the CX, it has to feel like part of the service. That starts with seamless integration: no pop-ups, no redirects, and no disruption. Protection should appear inside the same interface the customer already trusts.
Clarity matters just as much as placement, so straightforward pricing, quick activation, and simple-language explanations reduce the mental load that often accompanies insurance decisions. The experience also extends beyond the sale. Claims, renewals, and continuing support must feel as intuitive as the initial purchase; otherwise, trust gained in the beginning evaporates quickly.
Four levers determine whether embedded insurance feels like care:
- Timing: Arriving at the ideal moment in the right emotional window. Too soon and it's irrelevant; too late, and the customer has already mentally moved on. But hit that perfect moment and attention can quickly become willingness.
- Personalization: This revolves around contextual relevance and offering coverage that fits the user's situation without demographic stereotypes or generic add-ons.
- Speed: Instant activation reinforces confidence; waiting undermines the very safety insurance is meant to provide.
- Claims: The ultimate test. A smooth, low-effort claim can turn a customer into a word-of-mouth marketer.
For example, a tenant signs a new lease through a property management portal. They're immediately directed to a co-branded insurance portal to either purchase coverage or upload proof of an existing policy. The transition is simple. If purchasing in the insurance portal, the tenant can then select appropriate limits or choose coverage that protects their personal belongings. And if a pipe bursts after move-in, the tenant can upload a few photos through their digital account and submit a claim within minutes, guided through each step instead of navigating stressful paperwork alone.
These moments define the experience much more than policy language. When embedded insurance removes friction, both emotional and practical, it stops feeling like an upsell and starts feeling like protection. The impact is clear in customer metrics. A 2024 study found a 17-point increase in customer satisfaction with digital insurance claims, driven largely by improvements in the range of services offered on mobile apps and websites, as well as visual appeal. Clearly, showing up with the right design and at the right time can shape customer sentiment at critical moments.
CX LIVES OR DIES IN THE PARTNERSHIP LAYER
No insurer or platform can deliver embedded insurance on its own. And any embedded insurance experience can fall apart if the system behind it isn't prepared and aligned. CX is co-owned: the insurer, the distribution platform, and the underlying technology all shape the moment a customer is offered protection. The strongest partnerships don't feel like transactional business deals; they operate like shared problem-solving.
A BCG report says that "to make the most of their opportunities, insurers will need to support and collaborate extensively with their business partners to become the provider of choice." This means teams jointly determine where insurance should appear in a workflow and how it should feel when it does. Technology, design, and messaging must blend seamlessly with the platform's brand so that customers only see a single experience, not two companies stitched together.
All of this work happens long before the first customer sees an offer. During discovery, both sides typically map the data already available in the platform's journey, such as lease information and account details, to the minimum information an insurer needs to provide a quote. When this is done well, eligibility questions shrink, quoting steps become simpler, and drop-off decreases. Clearer language replaces legal jargon, and forms become shorter and more intuitive. This way, the partnership shapes the ease customers feel long before they think about making a claim.
Customers remember the experiences that remove fear, not the ones that add friction. So the next step for embedded insurance will come from insurers and platforms working in sync and designing for real human moments. The future of insurance hinges on making every step intuitive, predictable, and easy at every touchpoint.
